Investing

Stocks Down Tad As Trade Falls; U.S. Silica Struggles

Stocks continued to trade slightly in the red at midafternoon Friday, keeping the main indexes mostly on pace to score their second weekly gains in a row.

The Nasdaq and S&P 500 were both down 0.2%, while the Dow Jones industrial average dipped 0.1%. Volume has dropped from Thursday's levels across the board. For the week, the Nasdaq is set to gain about 1.4% and the S&P 500, 0.4%. The Dow is on pace to end roughly flat for the week.

U.S. Silica (SLCA) lost 4% in strong turnover. Intraday Friday, it had fallen more than 8% below its recent buy point at 15.32, tripping IBD's 7% to 8% sell rule. The provider of proppants for fracking was No. 15 in Wednesday's IBD 50 lineup.

DaVita HealthCare Partners (DVA) fell less than 1% in strong volume, as it was set to lose ground for the fifth straight session. The stock, No. 48 in Wednesday's IBD 50, rose out of the gate and tried to reclaim its 50-day moving average, but then turned tail.

On the upside, Family Dollar (FDO) jumped 2% in big volume. The rally can be viewed as a breakout past a base within a larger pattern. It's clearing resistance around 70 in that shorter structure. The discount retailer has a respectable IBD Composite Rating of 85 out of a best-possible 99.

Ulta Beauty (ULTA) climbed 7% in huge turnover. The specialty retailer said Q3 earnings jumped 41% to 59 cents per share, topping estimates, though it was the fourth straight quarter of modestly decelerating EPS growth. Sales rose 22% to $505.6 million, just above views. The stock has lifted above its 50-day moving average as it continues to work on a base that began in early September.

Friday's economic news was mixed. A Chicago-area purchasing managers index gained slightly from 49.9 to 50.4 for November, just barely above forecasts and signaling expansion. But personal income was flat in October, missing expectations for a 0.3% advance. The Commerce Department also reported personal spending dipped 0.2%, falling short of forecasts for a 0.1% increase. House Speaker John Boehner again made negative comments about talks to avoid the fiscal cliff, saying there's a "stalemate."